Is It a Product?

If I were talking about ice-cream, you would probably have no problems answering my question. But I have something more controversial in mind and more specifically – TV. Is it a mass medium, a platform for promoting and selling goods and services, or is it a product itself? I guess there is no doubt it is the first two and even though we are not used to thinking of it as a product, it actually is. And interestingly enough, it is not only the middleman between advertisers and viewers but it is, in fact, trying to promote itself to both these groups.

What makes it attractive to the first market segment is its capability of reaching mass audiences at a relatively low cost (what I mean here is not that paying tens and thousands of dollars per ad is cheap, but that it is relatively cost-effective given the number of people that could potentially be exposed to the advertiser's message). Whether or not it is doing that efficiently and effectively has been under scrutiny these days, however, that is not the point of this post. To its second target market it is appealing for three main reasons – it is a source of information, it is entertaining, and it provides reinforcement.

As all other products on the market, TV has also had some difficulty “selling” itself recently. And the reason underlying this problem is not only the fact that there are hundreds and thousands of different channels competing for the attention of “just” 200 million people or so, but also the fact that there are so many other sources that provide the same benefits (if not more) to the same target market. And so, as all other products, TV (personified by its top management of marketing) has been trying to come up with creative ways to break through the clutter and attract people’s attention. If you have been following the marketing trends these days, you would probably not be surprised to hear that the solution they come up with is called viral marketing.

Ever heard of MTV or Laguna Beach? The answer is definitely “yes” to the first question and most probably “yes” again to the second, especially if you are between 10 and 55 years old and a U.S. citizen. How bout Virtual Laguna Beach? If you have not yet heard, this is the new virtual game that has been introduced days before the third season of the TV show with the same name began. It gives players the opportunity to experience first hand what life in the Laguna is life. All you have to do is create an avatar and enjoy yourself. And to make your experience even better you are invited to join with your frineds. Sounds like the epitome of viral marketing, doesn't it? One of the things that is interesting about VLB is that players would have the opportunity to watch the new episodes before they have actually aired on TV. They can compete to become queen and king of the Winter Formal, go shopping and partying, make friends, chat, and flirt. And since I mentioned going shopping, a thought came to my mind. How do people pay for their purchases? It turns out the creators of the game have thought of that - you can either win MT$ (the official Virtual Laguna currency) or… turn some real dollars into MT$ - as the website complaisantly announces, “all major ATM and credit cards are accepted.” Since I was really intrigued, I right away made myself an account and went shopping to see what other surprises I would encounter. To my surprise, I could not buy any branded sneakers (all were under the common category “sports shoes”) or any other piece of clothing, however, I got a pretty good idea of what is to be worn this season. As a matter of fact, I still believe that once the game gains popularity and marketers perceive it as a viable channel, we would start seeing product placements in it. For now its sole purpose is providing Laguna Beach fans with the opportunity to enjoy their favorite show 24/7.

And did I mention that it can only be accessed through Internet Explorer!?